They should educate customers by public seminars and discussions regarding the benefits that Islamic Banking system in some aspects provides better value and serves as an alternative financial approach that is not limited for Muslims but any religion. With these approaches, Islamic Financial institutions in Malaysia can gain more popularity and further enhance the system to a better financial market place. Dr Amat Taap Manshor proposed that the scarcity of human resources in Islamic Finance ihttps://www.grammarly.com/?q=writing&utm_source=placement&utm_medium=cpc&utm_content=46860A.png&utm_term=paperraters an ongoing problem and there isn’t specific timeframe whether the issue can be resolved, thus continuous effort from all parties is needed. (The Star Online, 2015). Malaysia should seeks to become a centre of talent developer and supplier instead of just acquiring them.
Since the 1980s, the industrial sector has led to the economy growth of Malaysia. This is because there is high level of investment such as heavy industries and manufactured industries, which led to Malaysia’s domestic activity and export increases. So, Malaysia achieved GDP growth with low inflation in 1980s and 1990s. From the late 1980s, mutual funds, hedge funds, and other institutional and even individual investors are looking to invest in the rapidly growing economies of East Asia. In 1990’s, there was an economic expansion in Malaysia.
However, following the entrance of multinationals from Japan, USA and Europe, the above two economies diminished in importance in the 1990s. Nevertheless, they carry almost half of the total China FDI. According to United Nations (1992,1993) , Global FDI in nominal terms doubled in 1975 and 1985 and quadrupled between the years 1980 and 1990. In 1989 alone it achieved a high of $200 billion which was the biggest ever at that time. This figure dramatically rose to about $234 billion in 1990.
All the sector either in government or private has play their role to achieve target. The Malaysian financial system also has play important role in facilitating the growth and economic transformation on the Malaysian economy though a economic development such as a more integrated and globalised environment, and the more sophisticated and diverse investment and financing needs of the domestic economy will require a financial system that is more progressive and dynamic to advance the nation’s vision. The program that has been implementing such as 1 AZAM and BR1M gives a benefit to all stages of age that show a government effort to achieve a middle class society. 5.0 BIBLIOGRAPHY OR REFERENCE Easterly, William. (2001).
Thus, the development of a bond market was viewed as a priority because it served as an alternative source of raising capital. In view of the importance of this issue, the Malaysian government had established a committee to expedite the development of the bond
The economic downturns in year 1985 in the developed countries are affected by the U.S. high interest rate policy and it causes a large crumble of commodity trade in the world. Due to this, the export price index in Malaysia is affected by decreased by 30%. Economic downturn make the local commercial banks faced the highest non-performing loans which is 17.8% of the overall loans. Asia Financial Crisis in July 1997 was happened due to the floating of the Thai bath and it made the economics of Malaysia slightly raised doubt that it would perish to a Thai financial
Indonesia had low inflation, a trade surplus of more than $900 million, huge foreign exchange reserves of more than $20 billion, and a good banking sector. But a large number of Indonesian corporations had been borrowing in U.S. dollars. During the preceding years, as the rupiah had strengthened respective to the dollar, this practice had worked well for these corporations; their effective levels of debt and financing costs had decreased as the local currency's value rose. In July 1997, when Thailand floated the baht, Indonesia's monetary authorities widened the rupiah currency trading band from 8% to 12%. The rupiah suddenly came under severe attack in August.
However, he also expects the national economy to see a 5% year-on-year growth next year, an improvement from the estimated 4.6% growth estimated in 2013. Another article from The Star quoted Edward Lee Wee Kok, regional head for Standard Chartered Bank’s South East Asia Global Research, as saying that Malaysia’s inflation rate is projected to be at 3.4% for the first three quarters of 2014 due to slower consumption, as a result of higher prices on consumer goods. The firm also cited subsidy rationalisation as a reason behind its inflation projection. Lee said their forecast for Malaysia’s economic growth for 2014 is
Based on Chung.T, as cited by Bank Negara Malaysia (2012), household debt in Malaysia has increasing from recent year by increasing RM667.8 from year 2011 to RM754.6 billion in year 2012 and it also represent an average increase of 12.3% since year 2008. From there it shows that our household debt in Malaysia has increasing. This situation maybe happened effect from the factor such as gross domestic product (GDP), housing price and mortgage. Household debt not only rising in Malaysia, other country also affected with this problem. Joseph, S. (2013), said that rising of household debt not only in Malaysia but every year up to 2012, Canada is also facing household debt.